Under the Post-COVID period: Investigation into Business Performance of the Rental-Equipment Industry -- H&E Equipment

Abstract

As the economy continuously developing nowadays, industries like rental equipment sector have been continuously growing and developing into a more competitive player in the global market. As the COVID-19 stresses the importance of the supply-chain issue, rental equipment industry is worth to be an industry that investors should have a focus on. As a leading company in the rental equipment industry, H&E Equipment is taking as an example to conduct the SWOT analysis in order to know its internal and external factors that would affect its overall business performance. By conducting the SWOT analysis, we can conclude that H&E Equipment is a healthy company with growing revenues, has a very strong dealership community, is able to attain its vertical integration. Furthermore, by achieving vertical integration through acquisitions of companies, H&E Equipment expands its industrial landscape and obtains a higher bargaining power. However, it also has limitations like its financial performance comparing to its competitors’, and the influence that the COVID-19 has on the rental equipment industry. To be more specific, the COVID-19 would cause supply-chain issue to the rental equipment industry which would lead to longer time lengths of deals, and limitations in transportation The article is to help the audience understand the business model, objectives, advantages, and limitations fully in order to stay objective in the rental equipement market.